The Cost of Obamacare Has Gone Down, Not Up

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Republicans rushed to the microphones today to announce that new projections show that Obamacare will break the bank. In fact, says Fox News, a CBO reports says that it will cost “twice as much as the original $900 billion price tag.”

You will be unsurprised to learn that this is not true. As Jon Cohn patiently explains here, the previous CBO report estimated the costs of expanded insurance coverage between 2012-21. The new report covers 2012-22. In other words, the new report includes an extra year compared to the previous one. That’s the main reason that costs are higher.

In fact, CBO is quite clear on what an apples-to-apples comparison shows:

The current estimate of the gross costs of the coverage provisions ($1,496 billion through 2021) is about $50 billion higher than last year’s projection; however, the other budgetary effects of those provisions, which partially offset those gross costs, also have increased in CBO and JCT’s estimates (to $413 billion), leading to the small decrease in the net 10-year tally.

As Table 1 shows, if you compare the original 2012-21 time period, CBO’s new estimate of the cost of Obamacare is $48 billion less than it was last year. (The report estimates only the cost of expanded insurance coverage under Obamacare, not the entire set of costs and revenues. So the total impact on the deficit hasn’t yet been updated.)

Moral of this story: Never believe anything that Republicans say about Obamacare until you check out the source yourself. But you already knew that.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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